Tue , 21 Apr 2026
Loan

Loan

Respected Ulama

 

A person has a business and is in need of a loan. A friend agrees to lend R50 000, but the friend says he wants a share of his sales ie. he will invest in his business, but he must be paid R65000.

If he repays him back R65000 , he will lend him the money.
Is such a transaction allowed?

 

 

 

Answer

Assalaamu alaykum
The arrangement as described by you is Riba and hence impermissible.
And Allah Ta'ala knows best Was salaam Emraan Vawda